Microsoft Dynamics SMB accounting software to support the UK initiative Making Tax Digital

Are you using our accounting software Dynamics NAV or Dynamics 365 for Finance & Operations, Business Edition and worried about compliance with Making Tax Digital?

Making Tax Digital is on everyone's lips in the United Kingdom (UK) at the moment. And with good reason. Making Tax Digital is an initiative to make it easier for both businesses and individual citizens to stay on top of their tax-related affairs. The ambition of Her Majesty's Revenue and Customs (HMRC) service is to become one of the most digitally advanced tax administrations in the world and to make the tax system more effective, efficient, and easier for customers to comply with.

Making Tax Digital will be rolled out in phases - or rather - enforcement of different aspects of this initiative will happen over time.

At the time of this post we know that businesses in the UK will be required to start using the Making Tax Digital system in April 2019, but only be to meet their VAT obligations. This is, of course, subject to change. The UK government has said (committed) that it will not broaden the scope of Making Tax Digital for business beyond VAT until the system has proven to work, and not before April 2020 at the earliest.

How does Microsoft support Making Tax Digital?

We are working to ensure that the supported UK versions of Microsoft Dynamics 365 for Finance and Operations, Business edition, as stated in the Microsoft Lifecycle Policy, will comply with the Making Tax Digital initiative.

We already support submitting VAT reports electronically. However, at the moment the technical requirements of the initiative are unclear, so we are in dialog with the HMRC and advisory groups in the UK to ensure that our products functionally support Making Tax Digital before it takes effect for businesses.

Here are some of the frequently asked questions we get on Making Tax Digital from our customer and partner communities: